UK mortgage lending startup Perenna has raised $52m within weeks of securing an unrestricted banking licence.
The organisation has made notable strides recently, securing significant investments to solidify its presence in the competitive banking sector.
In its quest to reimagine the structure of the UK mortgage market, Perenna focuses on introducing long-term fixed-rate mortgage products. This is a stark contrast to the UK’s conventional market which leans heavily towards variable and short-term fixed-rate packages.
The newly raised funds are earmarked for launching the much-anticipated Perenna Mortgage. Their offering, notably 20-30 year fixed-rate products, has already amassed a waiting list of over 5,000 eager potential customers. Eligible individuals on this list will soon receive invites to apply, with the broader public expected to gain access later this year.
What truly differentiates Perenna’s strategy is its innovative funding model. Rather than the conventional reliance on retail deposits, the firm looks towards issuing covered bonds. This strategic move aims to open the doors of the UK mortgage market to institutional investors on the hunt for long-term stable income.
Perenna CEO and co-founder Arjan Verbeek remarked, “This successful fundraise, set against the backdrop of a challenging fundraising market is a clear testament to the strength of our unique approach and the significant opportunity to reimagine the structure of the UK mortgage market.” Further elaborating on their innovative model, Verbeek stated, “With over £3tn of investor monies having no efficient access to the UK mortgage market, our covered bond platform will unlock this, enabling them to generate sustainable risk-adjusted returns whilst also delivering better outcomes for homeowners across the country.”
Notably, the company isn’t new to substantial investments. Last year, upon securing a restricted banking licence, they raised an impressive £25m in a Series A round, led by Silverstripe IAG. Since its inception in 2020, Perenna has managed to gather funds amounting to a cumulative $90m.
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